A dispute concerning the renewal of a commercial lease in a holiday residence
By judgment of 2 June 2026, the Commercial Rent Judge at the Montpellier Judicial Court was asked to rule on a dispute concerning the setting of the renewed rent for a commercial lease entered into in a holiday residence operated by the company Belambra Clubs. The decision does not yet provide a definitive solution regarding the rent amount but orders a judicial valuation to determine the rental value of the premises.
The dispute concerns a one-bedroom flat with a floor area of 29.10 m² located in a tourist residence operated by Belambra. The commercial lease was signed on 2 November 2009 for the operation of a tourist residence business offering hotel-style services, including, in particular, furnished subletting, guest reception, provision of linen, regular cleaning and breakfast.
The contract was concluded for an annual rent of €5,587 excluding VAT and charges, subject to an indexation clause. The lease was due to expire on 30 October 2021.
The request for renewal of the lease
A request based on the market rent
By registered letter dated 30 July 2021, Belambra Clubs requested the renewal of the lease with effect from 31 October 2021, asking that the new rent be set at the market rent.
Subsequently, a preliminary statement was served on the landlord on 26 October 2023 in accordance with the procedure applicable to the setting of the renewed rent. In the absence of an amicable agreement, Belambra finally brought the matter before the commercial rent tribunal by writ of summons dated 22 October 2025.
A significant rent reduction sought
Belambra argued that the premises should be classified as single-purpose premises within the meaning of the Commercial Leases Act.
On this basis, it contended that the rental value should be determined using the hotel method typically applied to tourist residences.
The operator therefore requested that the renewed rent be set at €3,996 per annum excluding tax and service charges with effect from 31 October 2021, representing a significant reduction compared to the initial contractual rent of €5,587.
It also sought reimbursement of any rent overcharged, together with statutory interest and capitalisation of interest.
The arguments put forward by Belambra
The classification of single-purpose premises
Belambra argued that the premises had been specially designed and fitted out for the operation of a tourist residence.
In its view, this specific use justified the application of the regime for single-purpose premises provided for in Articles L.145-33 et seq. of the Commercial Code.
This classification is essential as it generally leads to the traditional rental comparison methods being set aside in favour of an approach based on the economic operation of the establishment.
The use of the hotel method
The operating company requested that the rental value be calculated using the hotel method.
It argued that this method should be based on actual achievable revenue rather than on theoretically advertised prices. According to its analysis, the determination of the rental value should take into account:
- the actual achievable turnover;
- the commissions borne by the operator;
- the performance of comparable residences;
- the specific characteristics of the establishment in question.
To support its position, Belambra produced an amicable expert report drawn up in November 2021.
The landlord’s failure to defend the case
An absent landlord
The landlord, Mr [I], did not instruct a solicitor and did not submit any observations to the commercial rent tribunal.
This lack of defence did not, however, exempt the court from rigorously examining the evidence produced by Belambra.
The limitations of the amicable report
The judge reiterated a well-established procedural principle: unless otherwise provided for by law, a judicial decision cannot be based exclusively on an amicable expert report commissioned at the request of a single party.
However, in this case, the court had only a single non-adversarial expert report drawn up at the tenant’s initiative.
The judge considered that this document was insufficient to enable him to determine with certainty the rental value of the renewed lease.
The decision of the commercial rent tribunal
A court-ordered expert assessment
Considering that it did not have sufficient evidence to resolve the dispute, the court granted Belambra’s alternative request and ordered a court-appointed expert assessment.
The appointed expert will be required, in particular, to:
- inspect the premises;
- describe their condition, intended use and floor area;
- examine changes in local market conditions;
- analyse the economic characteristics of the business;
- examine the rents charged in the neighbourhood;
- determine the rental value;
- propose the amount of the renewed rent, justifying the valuation method.
A particularly wide-ranging remit
The remit entrusted to the expert covers all the criteria set out in Article L.145-33 of the Commercial Code, as well as factors specific to the tourism sector. The report must be submitted by 6 April 2027.
Belambra must deposit a sum of €1,200 by 1 September 2026 to enable the expert assessment to commence.
Practical implications of the decision
This decision illustrates a common practice regarding the setting of renewed rent in tourist residences. Even in the absence of any challenge from the landlord, the judge refuses to rely exclusively on an amicable valuation produced by the tenant. Where the determination of the rental value involves complex technical assessments, particularly where a claim of single-use status is made and the hotel method is applied, a judicial valuation remains the preferred tool for informing the court prior to any final determination of the renewed rent.
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